Here’s why you should make a Bitcoin accumulation plan
Since I discovered Bitcoin, I immediately started making an accumulation plan on it. The reasons are many and I detailed in an article recently why Bitcoin is king. BTC has a bright future no matter how much the price is going up or down. I state that an accumulation plan can also be done on other cryptocurrencies, I wrote in another article how to choose the validity of a cryptocurrency based on certain criteria. You choose according to your goals how to divide your accumulation plan, but at least reserve a good percentage of this plan to accumulate Bitcoin. The accumulation plan is a constant investment of an individual’s income that provides for the periodic purchase of BTC to gradually grow the capital over time. It looks a lot like the Dollar Cost Average (DCA), an investment strategy devised many years ago by economist and investor Benjamin Graham.
Making this plan has several advantages, and the main ones are:
- builds a healthy habit of periodic savings, i.e. it allows the investor to make a certain amount of capital available on a constant, continuous and persevering basis
- trains the person to think long-term, not to seek immediate gratification
- it can be done by everyone because it allows you to invest small sums and without large capital available immediately
- limits the seasonal component to a minimum because the plan is carried out constantly
- allows you to better manage emotions, since by providing for a periodic payment of the capital, the temptation to invest only in certain market contexts, or to disinvest in other more delicate situations is reduced
To make a good accumulation plan, set yourself goals to achieve. Your goal must be easily measurable and realistic. For example, if your income is $2,000 a month, you could aim to accumulate 0.1 BTC in one year at the current price of Bitcoin.
The two key aspects for building your portfolio are:
- choose how much to accumulate: deposit at least 10% of your earnings. If you can, consider a variable percentage from 20 to 30% of your income (however, this value is always chosen at the investor’s discretion, possibilities, family needs, etc.)
- decide on the periodicity, i.e. how often you deposit the same amount to increase your plan. I usually do a monthly payment.
Consider hoarding other cryptocurrencies. I do it as an investment strategy and when the price is high I sell them. With their proceeds, I buy more fractions of Bitcoin. For example, if you had started a Bitcoin accumulation plan 5 years ago, what would have been the ROI (Return On Investment)? 162% !!!
To make your accumulation plan you can do it in two ways:
- mark a day on your calendar and make a deposit to an exchange every month. Buy Bitcoin (or other crypto of your choice)
- through platforms like Binance using services like AutoInvest. Binance gives you the ability to create an automatic investment plan.
I recommend the first method. It’s my favorite because it’s an active process and you build a new habit. Don’t leave your assets on an exchange. As soon as you bought the asset, immediately transfer it to your cold wallet (I use Ledger). I can tell you that seeing your Bitcoins grow steadily is very rewarding.
I’ll give you another good reason to start accumulating Bitcoin. A few days ago Michael Saylor’s Microstrategy bought another 12,333 BTC for about $347 million at an average price of $28,136 per Bitcoin.
Now his company holds a whopping 152,333 BTC acquired for $4.5 billion. You don’t want to run out of Bitcoin, do you?
Tell me if you are already making your own accumulation plan and how in your opinion it should be structured.
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